At PTI Conference, FG Says Technology Transfer Key Challenge in Oil Sector

•Oborevwori asserts Delta state prioritising security

•PTI seeks accelerated commissioning of $5bn Energy Bank

Emmanuel Addeh in Abuja

The federal government yesterday said that while the right legal and regulatory framework now exists in the oil and gas industry, critical challenges like technology transfer, under-utilisation of domestic refineries as well as capacity gaps in workforce remain major issues in the sector.

Speaking at the opening of the 2025 International Conference on Hydrocarbon Science and Technology (ICHST) organised by the Petroleum Training Institute (PTI), the ministers overseeing the sector, Ekperikpe Ekpo (gas) and Heineken Lokpobiri (oil) represented by the Permanent Secretary in the ministry, Dr Vitalis Obi, stated that Nigeria still has considerable opportunity to further leverage its hydrocarbon endowment.

The theme of the two-day conference was:  “Transforming Africa’s Hydrocarbon Sector: Balancing Growth, Environment and Governance.”

“However, the reality is that while the legal and regulatory framework is in place, much remains to be done; many of our domestic refineries are under-utilised, we still face capacity gaps in our workforce, technology transfer remains a challenge, and environmental and community obligations continue to test our performance.

“For example, as recently reported, the DCSO (Domestic Crude Supply Obligation) regime under the PIA is not yet fully operational, and the upstream regulator has had to intervene to enforce compliance,” the government said.

Given the PIA’s clear emphasis on local content, indigenous capacity, and workforce development, the ministers noted that the PTI is uniquely placed to support the ongoing transformation agenda.

As Nigeria charts the path ahead, the federal government proposed three inter-linked capacity-building imperatives for PTI, including up-skilling for the energy transition, bridging the skills gap in the existing value chain as well as enhancing research, innovation and technology transfer.

“Recent reporting indicates that Nigeria’s crude output has risen to 1.7-1.83 million barrels per day and active drilling rigs have increased from 31 to 50 within seven months in 2025, driven by ‘Project One Million Barrels’ and enabled by the reform environment under PIA. This demonstrates that the legal/regulatory reforms are bearing fruit, and we need skilled manpower to sustain this momentum,” the ministers said.

To support some deliverables, the ministry said that it expects PTI and all stakeholders to ensure at least 70 per cent of PTI graduates within the next three years are placed in industry roles or start-up ventures, thereby increasing indigenous participation.

Also speaking, the Governor of Delta state, Sheriff Oborevwori, who received the Award of Excellence in Leadership from the PTI, asserted that for too long, the Niger Delta has lived with the paradox of vast resource wealth amidst deprivation and environmental degradation, where growth often came at the cost of ecology and governance.

 “From the outset of our administration, we made it clear that this imbalance must end. Our M.O.R.E Agenda, Meaningful development, Opportunities for all, Reforms for institutional strength, and Enhanced peace and security is our blueprint for a new order. We did not come to maintain the status quo but to change it.

 “We have prioritised peace and security as the foundation for investment and growth. Through inclusive engagement with community leaders and industry operators, we have fostered a more stable operating environment. This is not just good politics; it is sound economics.

 “We are also ensuring that Deltans are not bystanders but participants and beneficiaries of the oil and gas value chain. By promoting local content, partnering with NCDMB, and preparing our people through institutions like PTI, we are positioning them to seize emerging opportunities,” Oborevwori, who was represented by his Chief of Staff, Johnson Erijo, said.

Equally, he stated that Delta has made environmental remediation a priority, explaining that the state was insisting on accountability and global best practices in operations to protect its fragile ecosystem.

 “ A healthy environment is essential to the survival of both our people and the industry. PTI is not merely our neighbour in Delta State; it is a strategic partner. The innovation, knowledge, and skilled manpower that emerge from this institution are invaluable assets in our drive to build a responsible and inclusive hydrocarbon economy.

 “This recognition today strengthens our resolve to deepen collaboration with PTI and the regulatory agencies represented here. Together, we must build a sector that powers today’s economy while securing a diversified energy future for Nigeria and indeed Africa,” he added.

Earlier, the Chief Executive Officer of PTI, Dr Samuel Onoji, stressed that the conference was both timely and critical as Africa navigates the complexities of the global evolving energy transition.

Since inception, he noted that over 55,000 skilled and competent professionals, technicians, technologists, craftsmen, and operators required for the oil and gas industry have been trained by PTI.

Stressing that Africa’s hydrocarbon resources remain pivotal to the continent’s economic development and energy security, he explained that the continent’s energy sector remains critical to its economic growth and development.

 “However, the sector faces significant challenges, such as inadequate infrastructure, insufficient investment, and energy poverty. As we navigate the complexities of energy transition, climate change imperatives, and quest for sustainable development, the balance between growth, environmental stewardship, and governance has never been more pertinent.

 “To address these challenges, the African Petroleum Producers’ Organization (APPO) in partnership with African Export-Import Bank (Afreximbank) have joined forces to establish the Africa Energy Bank (AEB) with headquarters in Abuja, Nigeria to provide low-interest rate funds for oil & gas projects, and also assists Africa countries to transit to renewable energies in future.

 “PTI recommends early commissioning of the Africa Energy Bank to enhance energy access for African countries, promoting economic growth and reducing energy poverty. This conference provides a unique platform for us to deliberate on strategies that can propel Africa’s hydrocarbon sector towards a future that is not only prosperous, but also sustainable and equitable,” he added.

In a presentation on : “Ethical Governance: The Bedrock of Africa’s Hydrocarbon Future”, Executive Commissioner, Corporate Services & Administration Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Dr. Kelechi Ofoegbu, noted that away from the wastage of the past, gas is being positioned for full utilisation to power homes, drive small industries, and provide clean cooking energy for millions.

For years, he said that oil flowed from the Niger Delta soil, yet very little flowed back in return, fuelling frustration and mistrust, but noted that with the establishment of the Host Community Development Trusts (HCDTs) under the PIA, the story was beginning to change.